- The 6th US Circuit Court of Appeals ruled against prediction market Kalshi, upholding state laws in Ohio and Tennessee that regulate sports-event contracts.
- A three-judge panel unanimously found that Kalshi failed to prove its sports-event contracts qualify as “swaps” under Commodity Futures Trading Commission jurisdiction.
- The decision follows a similar 9th Circuit ruling last month but conflicts with a 3rd Circuit decision allowing Kalshi to operate in New Jersey during appeals.
The 6th US Circuit Court of Appeals ruled against prediction market Kalshi on Friday, siding with Ohio and Tennessee in their effort to regulate sports-event contracts under state gambling laws. A three-judge panel unanimously ruled that Kalshi failed to demonstrate that its contracts are “swaps” subject to the Commodity Futures Trading Commission’s oversight.
However, the decision creates a deepening circuit split on the issue. The 9th Circuit Court of Appeals issued a similar finding last month, breaking from an April decision by the 3rd Circuit Court of Appeals that allowed Kalshi to do business in New Jersey while its appeal proceeds. Consequently, the conflicting rulings may push the dispute toward the Supreme Court for final resolution.
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